CBA drops 2-year fixed home loan rate to new low

By Tom Watson · · 2 min read
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The Commonwealth Bank has announced a number of changes to its fixed rate home loans this morning, including a new low rate of 1.94% (3.93% comparison rate*) for owner occupier borrowers on a 2-year fixed term.

The changes, which come into effect today, apply to numerous owner occupier and investor variations of the bank’s Fixed Rate and Fixed Rate Home Loan (Wealth Package) products, with cuts between 10-30 basis points and increases of 20 basis points.

Some of the notable rate movements include:

Owner occupiers

  • 10bp cuts to 1-year fixed rates which means the lowest rate now available is 2.09% (4.11% comparison rate*)
  • 20bp cuts to 2-year fixed rates which means the lowest rate now available is 1.94% (3.93% comparison rate*)
  • 20bp increases to 4-year fixed rates which means the lowest rate now available is 2.19% (3.73% comparison rate*)

Investors

  • 20bp cuts to 2-year fixed rates which means the lowest rate now available is 2.49% (4.49% comparison rate*)
  • 30bp cuts to 3-year fixed rates which means the lowest rate now available is 2.39% (4.31% comparison rate*)

Today’s cuts bring the Commonwealth Bank’s fixed rates for owner occupiers more in line with major bank competitors, with both NAB and Westpac having made reductions to their respective 2-year fixed rate offers in recent weeks.

NAB dropped rates last week to as low as 1.89% (3.77% comparison rate*) on its Tailored Home Loan (Choice Package) while Westpac’s cuts of up to 20bp earlier in March means rates on the Fixed Options Home Loan (Premier Advantage Package) are sitting as low as 1.89% (3.46% comparison rate*) for a 2-year fixed term.

As the table below shows, major bank offers - particularly on 2-year fixed terms - remain relatively competitive compared to the average and leading fixed rates** in the Mozo database.

TermRate leaderFixed rateAverage
1-yearGreater Bank1.69% (3.49% comparison rate*)2.34%
2-yearHomestar1.74% (2.23% comparison rate*)2.31%
3-yearUBank1.75% (2.22% comparison rate*)2.35%
4-yearBank of Melbourne & St.George1.94% (3.21% comparison rate*)2.36%
5-yearAussie1.99% (2.37% comparison rate*)2.62%

RELATED: The best home loans in Australia for 2021

Thinking about locking in your own home loan rate? One great place to start is by checking out our recently released 2021 Mozo Experts Choice Awards which include winners in the best Fixed Rate Home Loan category.

Or take a trip over to our handy comparison tables to compare home loans from even more lenders on everything from interest rates and fees to handy features.

**Accurate as of March 22, 2021 and based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. For more information on average mortgage rates, check out our Australian home loan statistics page.

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Last updated 9 September 2024 Important disclosures and comparison rate warning*

Fixed home loan comparisons on Mozo

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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